Big news for solar in BC: BC Hydro has updated its analysis behind the proposed switch from net metering to net billing.
Net metering is the system that allows solar homes to send excess electricity back to the grid and receive credit at the same rate they pay for power. Net billing, the proposed replacement, would pay solar customers a lower rate for that extra electricity. BC Hydro initially argued this change would save money for non-solar customers, projecting millions in potential savings.
On January 14, 2026, BC Hydro issued an update showing that the original cost estimates had been overstated by 190%. After correcting the math, the projected savings are much smaller than initially reported.
The analysis also did not fully account for several broader impacts of distributed solar, including reduced strain on the electrical grid, lower transmission losses, and the role solar can play in conserving hydroelectric reservoir capacity. Additionally, it did not address how a shift to net billing could affect future solar adoption. Industry surveys indicate that net billing could reduce new solar installations by approximately 25%, potentially slowing investment in clean, locally generated energy.
With the revised data now available, questions remain about whether net billing delivers the benefits originally anticipated—particularly at a time when BC is working to expand clean energy supply, improve grid resilience, and encourage private investment.
We’ll continue to follow this issue and share updates as the BC Utilities Commission makes their decision.